Question

: QUANTITATIVE FINANCE AND STOCHATIC 1 ANSWER ANY ALL QUESTIONS 1. : quantitative Finance and Stochastic...

: QUANTITATIVE FINANCE AND STOCHATIC

1 ANSWER ANY ALL QUESTIONS 1.

: quantitative Finance and Stochastic Processes

July 2020, Test 1

Answer aNy ALL questions

  1. (a) A mineral exploration firm is formed with enough capital to finance 5 explorations. The equipment of particular exploration being successful is 0.25. Assume that the explorations are independent and conform to the properties of the Binomial experiment.

(i)        Find the expected number of successful explorations and its variance.

(ii)       Suppose the firm has a fixed cost of $50,000 and that it costs $25,000 to make a successful exploration. Find the expected total cost of the five explorations.

(iii)      What is the probability that no or one successful exploration is made?

(b) What is the present value of an annuity that pays $200 per month for six years if money is worth 6% compounded monthly?

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please give LIKE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Please answer all parts clearly. Any work guidance is very appreciated! For questions 1-3, X has...
Please answer all parts clearly. Any work guidance is very appreciated! For questions 1-3, X has a binomial distribution with n = 13 and p = 0.08. For questions 4-6, X has a binomial distribution with n = 11 and p = 0.24. 1) What is P(X = 0)? 2)What is P(X = 1)? 3)What is P(X > 4)? 4)What is P(X = 0)? 5)What is P(X = 1)? 6)What is P(X > 3)?
Answer all questions using true or false and explaining your answers. 1. In finance, hyperinflation causes...
Answer all questions using true or false and explaining your answers. 1. In finance, hyperinflation causes people to lose ability to move cash. 2. In finance, the main objective are to determine future decisions. 3. Finance measures efficiency and effectivenes of resources used. 4. One objective of finance is to look at the way resources were distributed.
short answer questions: please answer all questions 1. Explain the importance of the neuron’s axon hillock...
short answer questions: please answer all questions 1. Explain the importance of the neuron’s axon hillock to the neuron’s axon hillock. 2. What are 2 ways in which trophic factor levels might be increased?               a.                                                                                b. 3. What is a function that is supported by neurotrophins? 4. What is a function that is supported by trophic factors? 5. Explain how EPSP is related to action potential. 6. Identify an end result facilitated by second messengers in each of...
Finance questions (please answer 1, 2 and 3) 1. If the hypothetical equilibrium is achieved based...
Finance questions (please answer 1, 2 and 3) 1. If the hypothetical equilibrium is achieved based on CAPM model, market portfolio should be the only risky portfolio that all investors hold. Is the above statement true or false? Give explanations. 2. Sophia and John create their investment portfolios by splitting their wealth between optimal risky portfolio and the riskless T-bills. Sophia invests 30% of her wealth in optimal risky portfolio and 70% in riskless T-bills. John invests 30% of his...
NOTE: I HAVE 3 QUESTIONS ON HERE, I NEED ANSWER TO ALL QUESTIONS. THANKS 1)Turnbull Co....
NOTE: I HAVE 3 QUESTIONS ON HERE, I NEED ANSWER TO ALL QUESTIONS. THANKS 1)Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will...
ANSWERS should be typed please! answer all parts of question please! any wrong/incomplete/messy answer will be...
ANSWERS should be typed please! answer all parts of question please! any wrong/incomplete/messy answer will be marked as spam, otherwise thumbs up :), if you are not an expert pleae leave the question. Question # 9 A random variable x has the following distribution: x -2 -1 0 +1 +2 +3 p(x) 0.1 k 0.2 2k 0.3 3k (i) Find k. (ii) Find P(x < +2). (iii) Find P(-2 < x < +2). (iv) Plot CDF of x; and (v)...
1) Answer all 5 parts of the following questions. Using the following data and the data...
1) Answer all 5 parts of the following questions. Using the following data and the data in individual questions to answer these questions about a product. Assume you are the marketing manager for a company. Variable Costs = $35/unit Fixed Costs = $450,000 per year Expected Sales = 700,000 units per year 1-What is the target return price if the target return percentage is 15%? (1 pt.)
Use the following facts to answer Questions 1. Aron Company is trying to decide whether to...
Use the following facts to answer Questions 1. Aron Company is trying to decide whether to keep an existing machine or replace it with a new machine. The old machine was purchased just 2 years ago for $40,000 and had an expected life of 12 years. It now costs $1,300 a month for maintenance and repairs. A new machine is being considered to replace it at a cost of $50,000. The new machine is more efficient, and it will cost...
Answer all of the questions true or false: 1. a) If one row in an echelon...
Answer all of the questions true or false: 1. a) If one row in an echelon form for an augmented matrix is [0 0 5 0 0] b) A vector b is a linear combination of the columns of a matrix A if and only if the equation Ax=b has at least one solution. c) The solution set of b is the set of all vectors of the form u = + p + vh where vh is any solution...
Please make sure to answer all the questions correctly; 1.   In applying the gravity method, we...
Please make sure to answer all the questions correctly; 1.   In applying the gravity method, we subtract the scalar magnitude of normal gravity (gN) from the magnitude of the total component of the gravitational field (gT) to estimate the magnitude of gravity acceleration in the vertical to the ellipsoid (gz). Expand the error of this assumption using the binomial theorem to show that it is maximum at (gA2/gN), where (gA) is the magnitude of the gravity effect of the anomalous...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT